Contributions to an individual retirement plan are not subject to the general limits on contributions and benefits of IRC Section 415 ( Q 3868). (See Q 3701 for the effect of IRC Section 415 on simplified employee pensions.) The source of the funds contributed to an IRA is not determinative as to eligibility or deductibility so long as the contributing individual has includable compensation at least equal to the amount of the contribution.1
The IRA contribution limit does not apply to qualified rollovers into an IRA.2
Deductible Contributions
If an eligible individual contributes on his own behalf to a traditional IRA, he generally may deduct amounts contributed in cash up to the lesser of the “deductible amount” for the taxable year or 100 percent of compensation includable in his gross income for such year.3